NMG breaks ground on Matawinie lithium mine in Quebec

Canadian graphite producer Nouveau Monde Graphite (NMG) has initiated construction on its flagship Matawinie mine in Quebec, marking a key step in the development of a domestic supply chain for battery materials.

The $1.1 billion project, located 150 kilometers north of Montreal, will target high-purity graphite production to serve North American and European battery manufacturers. NMG said the mine is expected to begin operations in 2027, pending regulatory approvals and the final investment decision on the processing plant, slated for 2025.

The Matawinie mine is positioned as a critical component of NMG’s strategy to reduce reliance on foreign graphite suppliers, particularly from China, which currently dominates the market. The company secured offtake agreements with major battery producers, including Tesla and Panasonic, to support demand for the project’s output.

NMG has also secured financing commitments totaling $700 million, including a $400 million loan from the Quebec government and $300 million from private lenders. The remaining capital will be raised through additional debt or equity markets, the company said.

The project aligns with broader efforts in North America to bolster critical mineral supply chains amid rising demand for electric vehicles and energy storage systems. Quebec’s government has pledged $1.3 billion in support for the mining and battery sectors as part of its economic development strategy.

NMG’s shares, listed on the Toronto Stock Exchange under the ticker NMG, were up 2.3% in early trading on Tuesday.